RIYADH, 23 January 2007 — Saudi Arabian General Investment Authority has announced its target to license investment projects worth more than SR300 billion this year. It will also launch two more mega economic cities in Tabuk and Eastern Province this year with an aim to ensure equal growth for all regions of the Kingdom as per the directives of Custodian of the Two Holy Mosques King Abdullah.
“SAGIA is also working to prepare specialized economic reports for each region to shed light on investment opportunities, while it will also sign two investment agreements with two more regions to raise the number of such agreements signed with regions’ councils to seven,” said SAGIA’s annual report released here yesterday. The report, which predicts strategic trends for 2007, also contains a brief overview of SAGIA’s achievements in 2006.
This apex investment agency has set out a broad vision to attract more investment in 2007. It will implement its six major goals as part of its broad vision, which include investor services, regional development, focused marketing, attraction of investment to certain sectors, support for new projects and improvement of the investment environment.
In fact, in the field of licenses and services, SAGIA already licensed 1,389 joint and foreign projects in 2006 with a total value of SR253 billion, a growth of 25% compared to 2005.
“SAGIA plans to attract foreign and joint investment exceeding SR300 billion during 2007,” said the report, adding that this Saudi agency has opened an office for investors’ services at King Khaled International Airport in Riyadh.
Comprehensive Service Centers have gradually developed their services and electronic customer service methods. “Preparations are under way to open Comprehensive Service Centers in a number of the Kingdom’s regions and in the Economic Cities in the first quarter of this year,” said the report.
In the field of marketing, SAGIA has already opened offices in Britain, Germany, Japan, Hong Kong and Singapore, while it is planning to open five other offices in world capitals to attract investment during the current year.
Promoting investment in various regions of the Kingdom, SAGIA has signed agreements with the governors of Asir, Tabuk, Hail, Madinah and Jizan to set up investment councils and Comprehensive Service Centers.
SAGIA has also supported the development of the Madinah Airport and cooperated with the Asir-based Investment Council to develop the center of Abha City to be a major hub of the region’s economy.
Coordinating with the ministries of finance and labor, it was agreed to grant tax incentives and facilities for recruiting laborers for five years to promote investment in the less developed regions.
Referring to the encouragement being provided to young Saudi citizens, the report said that more than 400 investment opportunities directed to Saudi youth investors were prepared in 2006 alone.
Over the first quarter of this year they will be put on SAGIA’s website and distributed to its Comprehensive Service Centers. “In 2007 SAGIA will hold public and specialized forums to identify investment opportunities in the Economic Cities and strategic sectors,” said the report.
SAGIA has already signed 17 agreements with major Saudi companies within the framework of SAGIA’s Public Private Partnership Programs to activate the relationship between the public and private sectors.
According to the agreements, these companies provide financial support to execute SAGIA’s programs in exchange for a greater benefit of services provided by SAGIA.
Also, a number of well-known world corporations specializing in sectors of energy, transportation and knowledge-based industries were attracted last year to invest in the Kingdom.